GEN 7.3 GEN 7.3 Applications for endorsements
Carrying on service with or for a Retail Client
GEN 7.3.1 GEN 7.3.1
The following requirements must be met by an
Authorised Firmfor the grant of an endorsement to carry on a Financial Servicewith or for a Retail Client:(a) the applicant must have adequate systems and controls for carrying on Financial Serviceswith or for a Retail Client;(b) the applicant must have adequate systems and controls (including policies and procedures) to ensure compliance with the requirements in COBrelevant to Retail Clients;(c) the applicant must have adequate systems and controls to ensure that its Employeesremain competent and capable to perform the functions which are assigned to them, in particular, functions that involve dealing with Retail Clients; and(d) the applicant must have adequate Complainthandling policies and procedures.
GEN 7.3.1 Guidance
Where an Authorised Firm applies for an endorsement to carry on a Financial Service with or for a Retail Client that involves dealing in a Restricted Speculative Investment, the DFSA would expect it to be able to demonstrate that:(a) either another Group member, or its head office if it is a Branch, is authorised and supervised by a Financial Services Regulator and has at least five years of relevant experience in dealing in Restricted Speculative Investments with Retail Clients; and(b) a sufficient number of the compliance staff, and client-facing staff involved in dealing in Restricted Speculative Investments, have at least three years of relevant experience.
Acting as a Trade Repository
Endorsement to hold Client Assets or Insurance Monies
Authorised Firmapplying for an endorsement to hold or control Client Assetsmust satisfy the DFSA that it has in place adequate systems and controls to meet the applicable requirements in COB sections 6.11 to 6.14.Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]
Insurance Intermediaryor Insurance Managerapplying for an endorsement to hold Insurance Moniesmust satisfy the DFSAthat it has in place adequate systems and controls to meet the applicable requirements in COB section 7.12.Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]
Endorsement relating to Long-Term Insurance
Insurance Intermediaryapplying for an endorsement to conduct activities relating to contracts of Long-Term Insurancemust satisfy the DFSA that it has adequate skills and knowledge relating to underlying investments of Long-Term Insurance.Derived from DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]
Endorsement to use a Fund Platform
Personapplying for an endorsement to use a Fund Platformmust:(a) be authorised to Manage a Collective Investment Fund; and(b) satisfy the DFSA that the Incorporated Cell Companythat is to be the Fund Platform:(i) has adequate systems and controls to establish, manage, operate or wind up the type or specialist classes of Funds proposed to be established as Incorporated Cellsof that Incorporated Cell Company; and(ii) can carry out those activities in accordance with the requirements under the Collective Investment Law 2010and CIR that apply to the relevant type or specialist classes of Funds referred to in (i).Derived from DFSA RMI247/2019 (Made 18th December 2019). [VER45/12-19]